Las Vegas Sun

September 30, 2014

Currently: 83° — Complete forecast | Log in | Create an account

CFO: Sterling can’t pay debt without Clippers sale

Image

Danny Moloshok / Associated Press

FILE - In this Dec. 19, 2011 file photo, Los Angeles Clippers owner Donald Sterling watches the Clippers play the Los Angeles Lakers during an NBA preseason basketball game in Los Angeles. The future of the Clippers is closer to decision as testimony resumes Monday, July 21, 2014, in a probate trial over whether a deal negotiated by Donald Sterling’s estranged wife to sell the team for $2 billion is authorized under a Sterling family trust.

LOS ANGELES — The chief financial officer of Donald Sterling's properties says the billionaire may be forced to sell a large portion of his real estate empire to cover $500 million in loans if he persists in refusing to sell the Los Angeles Clippers for $2 billion.

Darren Schield, who oversees the finances of The Sterling Family Trust, testified Monday that three banks are ready to recall their loans to Sterling because of his decision to dissolve the trust. His move was designed to rescind agreement for the sale of the Clippers, a team he bought for $12 million.

Schield said if Sterling has to dump $500 million worth of apartment buildings he could destabilize the Los Angeles real estate market.

Sterling's lawyer suggested there are other options for raising the money.

Join the Discussion:

Check this out for a full explanation of our conversion to the LiveFyre commenting system and instructions on how to sign up for an account.

Full comments policy